North Carolina’s Big Crypto Bet: State Retirement Funds Could Hold Bitcoin

While the rest of the world is joining the digital assets race, North Carolina legislators are about to make sure that the state won’t fall behind. Bills proposed in the House and Senate in recent weeks could give the state treasurer the authority to invest 5% of retirement funds in digital currencies such as Bitcoin. The exciting news is not only a reflection of growing confidence in digital assets but also puts North Carolina on the Bitcoin bill warpath.

The Investment Modernization Act: A Step Toward Digital Asset Inclusion

Representative Brenden Jones introduced House Bill 506, the Investment Modernization Act, on March 24. The bill would create a new state investment entity in the state’s Treasury with the authority to decide what digital assets, such as cryptocurrencies, stablecoins, and NFTs, might be appropriate for retirement funds. A companion bill, Senate Bill 709, was introduced on March 25, verbatim the same as the House bill.

What makes these bills interesting is their flexibility. Unlike other states that set strict market cap criteria for digital assets, North Carolina’s approach gives the newly created North Carolina Investment Authority the freedom to carefully assess the risk and reward of each asset. The agency would also be responsible for ensuring that secure custody solutions are in place to protect these investments.

While this move opens doors for innovative financial strategies, it’s important to note that House Bill 506 is not a “Bitcoin reserve bill.” There’s no requirement for the state to hold Bitcoin or any digital asset long-term; rather, it allows the state to consider these investments if they make sense.

The Bitcoin Reserve and Investment Act: A Bolder Move

Just a week before, on March 18, North Carolina’s Senate introduced a more aggressive proposal, the Bitcoin Reserve and Investment Act (Senate Bill 327). This bill calls for allocating up to 10% of public funds specifically into Bitcoin. Sponsored by Republicans Todd Johnson, Brad Overcash, and Timothy Moffitt, the bill presents Bitcoin investment as a “financial innovation strategy” aimed at strengthening the state’s economy.

The treasurer would be required to store the Bitcoin in a secure multi-signature cold wallet and could only liquidate it during a “severe financial crisis,” and only with the approval of two-thirds of North Carolina’s General Assembly. A Bitcoin Economic Advisory Board would also be established to oversee this reserve.

Bitcoin Bills Gaining Momentum Across the United States

North Carolina isn’t alone. According to Bitcoin Law, 41 Bitcoin reserve bills have been introduced in 23 states, with 35 still active. This wave of legislation reflects how states are beginning to view Bitcoin not just as a speculative asset but as a serious financial tool with long-term value.

Earlier this month, even US President Donald Trump jumped into the mix by signing an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile — initially using cryptocurrency seized in government criminal cases.

Looking Ahead

With cautious and bold steps, North Carolina is eyeing Bitcoin as part of its financial future. Whether these bills pass or not, one thing is certain: The state has officially joined the growing list of governments exploring digital assets as a strategic investment — and it could be just the beginning.